Briefing on items on the agenda
Latest Update : July 4, 2019
Back to Shareholders' Meetings (Year 2019)
The 73rd Ordinary General Meeting of Shareholders
Business Report
We now report MinebeaMitsumi's business results for its 73rd fiscal year, together with consolidated and non-consolidated financial statements.
More information is provided on page 17 through 68 of the Notice of the 73rd Ordinary General Meeting of Shareholders.
The MinebeaMitsumi Group has adopted International Financial Reporting Standards (IFRS) from the fiscal year under review. Accordingly, for the purposes of comparative analysis, financial results for the previous fiscal year have been adjusted in line with the IFRS.
Brief Explanation of the Current Business Environment
During the fiscal year under review, the Japanese economy showed a gradual recovery in the first half, reflecting solid consumer spending and corporate earnings. However, in the second half, there was increasing uncertainty over the future due to a decline in business confidence arising from trade friction between the United States and China and a decrease in exports due to deceleration of the global economy. The U.S. economy was strong against a backdrop of improving employment conditions despite being impacted by the worsening trade dispute between the United States and China. The European economy declined due to a suspension of corporate activities based on concern over confusion arising from Brexit. In Asia, the Chinese economy slowed, primarily due to decreased exports arising from intensifying trade friction with the United States and a drop in domestic capital investments.
Working against this backdrop, the MinebeaMitsumi Group concentrated on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further.
Current Fiscal Year Results on Consolidated Basis
As a result, net sales were up 3,309 million yen year on year to 884,723 million yen, the highest since our founding.
Operating income was up 3,131 million yen year on year to 72,033 million yen, profit before income taxes was up 4,466 million yen to 71,321 million yen, and profit for the year attributable to owners of the parent was up 9,816 million yen to 60,142 million yen.
Business Results by Segment
Now we review the business results by segment.
Machined Components Business
The main products in our Machined components segment include our anchor product line, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fasteners for aircraft.
External sales of ball bearings increased to 2,347 million units, the highest ever, as demand soared for energy-efficient models and safety devices in the automobile market and for fan motors.
Rod-end bearing sales increased owing to favorable orders in the small and medium aircraft market.
Meanwhile, pivot assembly sales were down both in volume and amount despite our solid market share due to shrinking of the HDD market.
As a result, net sales were up 11,897 million yen year on year to 188,324 million yen, and operating income was up 6,743 million yen to 47,750 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (devices such as LED backlights for LCDs, sensing devices, etc.), HDD spindle motors, stepping motors, DC motors, air movers and precision motors.
Sales of stepping motors and other motors were up owing to strong performance primarily in the automobile market. LED backlights for LCDs sales were down due to the slowdown of smartphone demand.
As a result, net sales were down 64,586 million yen year on year to 387,293 million yen, and operating income was down 7,174 million yen to 16,922 million yen.
MITSUMI Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components.
Almost all products performed well, including camera actuators, mechanical parts for game consoles, switches, products for smartphones such as protection IC, antennas, communication modules and connectors.
As a result, net sales were up 56,008 million yen year on year to 308,423 million yen, and operating income was up 2,213 million yen to 22,282 million yen.
Consolidated Operating Income for this Fiscal Year
Aside from the above, 14,535 million yen in corporate expenses that do not belong to the segments is shown as an adjustment.
Capital Expenditures
Now let's move on to capital expenditures made during the fiscal year.
During the fiscal year under review, capital expenditures were 7,899 million yen for the Machined components business, 26,219 million yen for the Electronic devices and components business, 12,354 million yen for the MITSUMI business, 48 million yen for the Other businesses, and 7,679 million yen for the whole company (common), totaling 54,199 million yen.
The main capital expenditures for the Machined components business were equipment for bearings related facilities in Thailand and Shanghai. The main capital expenditures for the Electronic devices and components business were equipment for backlights, etc. related facilities in Thailand. The main capital expenditures for the MITSUMI business were equipment for optical devices related facilities, etc. in the Philippines.
Consolidated Financial Statements
Now we review the consolidated financial statements.
Consolidated Balance Sheet
Let's start off with the consolidated balance sheet.
Looking at the assets section, we see that total assets increased 38,569 million yen from the previous consolidated fiscal year end to total 742,127 million yen. The main reason for this uptick was an increase in "Cash and cash equivalents" due to increase in operating cash flow and an increase in "Property, plant and equipment" due to new capital investment.
Moving on to the liabilities and net assets section, we see that liabilities totaled 334,867 million yen, with a year on year decrease of 5,470 million yen. This was mainly due to a decrease in "income taxes payable".
Net assets rose 44,039 million yen to total 407,260 million yen from the previous consolidated fiscal year end. This was mainly due to an increase in profit for the period attributable to owners of the parent.
These results all add up to liabilities and net assets totaling 742,127 million yen, a 38,569 million yen increase over what they were at the end of previous consolidated fiscal year.
Consolidated Statement of Income
Now let's look at the consolidated statement of income.
Net sales were up 3,390 million yen year on year to total 884,723 million yen. Operating income increased 3,131 million yen year on year to total 72,033 million yen. Since we already went over net sales and operating income, I won't go into it again here.
Ordinary income was up 4,466 million yen year on year to total 71,321 million yen due mainly to an increase in operating income and decrease in finance expenses such as decrease in foreign exchange loss.
Profit for the period attributable to owners of the parent was up 60,142 million yen year on year to total 60,142 million yen due to increase in profit before income taxes and decrease in income tax.
Net sales and profit for the period attributable to owners of the parent have reached record highs since our founding.
Non-Consolidated Financial Statements
Next is an overview of our non-consolidated financial statements.
Non-Consolidated Balance Sheet
Now let's look at the non-consolidated balance sheet.
The balance sheet shows an 30,429 million yen increase in assets over the figure at the end of the previous fiscal year, bringing total assets to 508,316 million yen. The main reason was an increase in dividends income as a result of improved performance of subsidiaries and increase in cash and deposits due to recovery of short-term loans receivable from affiliates.
Looking at the liabilities and net assets section, we see that liabilities totaled 248,879 million yen, up 21,661 million yen from the previous fiscal year end. This jump was primarily due to an increase in accounts payable.
Net assets totaled 259,436 million yen, up 8,768 million yen over the previous fiscal year end. This is mainly due to an increase in net income.
These results all add up to total liabilities and net assets of 508,316 million yen, an 30,429 million yen increase over the previous fiscal year end.
Non-Consolidated Statement of Income
Now let's look at the non-consolidated statement of income.
Net sales were up 103,858 million yen to reach 576,340 million yen year on year. The main reason was the increase in sales due to the expansion of business.
Operating income was 5,842 million yen, a decrease of 1,414 million yen compared with the previous fiscal year. The main factor behind this is the expense related to expiration of the "Trust-type Employee Shareholding Incentive Plan".
Ordinary income rose 5,880 million yen from the previous fiscal year to total 30,691 million yen. This was because of increase in dividends income.
These results all added up to net income of 27,751 million yen, an 7,700 million yen increase over the previous fiscal year.
